Question 1

Which of the following decreases the supply of restaurant meals?

Accepted Answer

A)  The price of movies, a complement to restaurant meals, falls. 
B)  Consumersʹ incomes decrease and restaurant meals are a normal good. 
C)  Consumersʹ incomes increase and restaurant meals are a normal good. 
D)  Waiters get a pay raise. 
A)  The price of movies, a complement to restaurant meals, falls. 
B)  Consumersʹ incomes decrease and restaurant meals are a normal good. 
C)  Consumersʹ incomes increase and restaurant meals are a normal good. 
D)  Waiters get a pay raise.

Question 2

A decrease in quantity demanded because of an increase in price is represented by a

Accepted Answer

A)  movement down and to the right along the demand curve. 
B)  rightward shift of the demand curve. 
C)  movement up and to the left along the demand curve. 
D)  leftward shift of the demand curve. 
A)  movement down and to the right along the demand curve. 
B)  rightward shift of the demand curve. 
C)  movement up and to the left along the demand curve. 
D)  leftward shift of the demand curve.

Question 3

If the price per bushel of apples increased from $7.00 to $8.00 because of a poor harvest, the

Accepted Answer

A)  demand for apples decreases. 
B)  quantity of apples supplied decreases. 
C)  quantity of apples demanded decreases. 
D)  Both answers A and B are correct. 
A)  demand for apples decreases. 
B)  quantity of apples supplied decreases. 
C)  quantity of apples demanded decreases. 
D)  Both answers A and B are correct.

Question 4

The relative price of a good is greater than the money price of a good.

Accepted Answer

A) True 
 B)False

Question 5

A recession occurs and peopleʹs incomes decrease. Knowing that an iPad is a normal good, you predict that the demand for an iPad

Accepted Answer

A)  increases. 
B)  might increase or decrease. 
C)  remains unchanged. 
D)  decreases. 
A)  increases. 
B)  might increase or decrease. 
C)  remains unchanged. 
D)  decreases.

Question 6

If the money price of hats rises and no other prices change, the
i. relative price of a hat rises
ii. opportunity cost of a hat rises

Accepted Answer

A)  only i 
B)  only ii 
C)  both i and ii 
D)  neither i nor ii 
A)  only i 
B)  only ii 
C)  both i and ii 
D)  neither i nor ii

Question 7

-In the above figure, if D2 is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result?

Accepted Answer

A)  point a, with price P2 and quantity Q2  
B)  point b, with price P1 and quantity Q1 
C)  point c, with price P3 and quantity Q3  
D)  point d, with price P1 and quantity Q3 
A)  point a, with price P2 and quantity Q2  
B)  point b, with price P1 and quantity Q1 
C)  point c, with price P3 and quantity Q3  
D)  point d, with price P1 and quantity Q3

Question 8

$\begin{array}{|l|l|l|}
\hline\begin{array}{l}
\text { Price } \
\text { (dollars per } \
\text { cellular } \
\text { phone) }
\end{array} & \begin{array}{l}
\text { Quantity } \
\text { demanded } \
\text { (thousands) }
\end{array} & \begin{array}{l}
\text { Quantity } \
\text { supplied } \
\text { (thousands) }
\end{array} \\hline 100 & 50 & 100 \
\hline 80 & 55 & 80 \
\hline 50 & 60 & 60 \
\hline 20 & 100 & 40 \
\hline
\end{array}$
-Using the data in the above table, at the price of $80 a phone, a

Accepted Answer

A)  surplus of 25 thousand cellular telephones occurs. 
B)  shortage of 55 thousand cellular telephones occurs. 
C)  surplus of 80 thousand cellular telephones occurs. 
D)  shortage of 25 thousand cellular telephones occurs. 
A)  surplus of 25 thousand cellular telephones occurs. 
B)  shortage of 55 thousand cellular telephones occurs. 
C)  surplus of 80 thousand cellular telephones occurs. 
D)  shortage of 25 thousand cellular telephones occurs.

Question 9

The ʺlaw of demandʺ states that changes in

Accepted Answer

A)  demand are inversely related to changes in supply. 
B)  demand are related directly to changes in supply. 
C)  the quantity demanded of a good are inversely related to changes in its price. 
D)  the quantity demanded of a good are not related to changes in the quantity supplied. 
A)  demand are inversely related to changes in supply. 
B)  demand are related directly to changes in supply. 
C)  the quantity demanded of a good are inversely related to changes in its price. 
D)  the quantity demanded of a good are not related to changes in the quantity supplied.

Question 10

Doctors find that one aspirin per day reduces the risk of heart attacks. Demand for aspirin will

Accepted Answer

A)  increase, so that equilibrium price and equilibrium quantity will increase. 
B)  increase, so that equilibrium price will decrease and equilibrium quantity will increase. 
C)  decrease, so that equilibrium price and equilibrium quantity will increase. 
D)  increase, but the new equilibrium price and quantity are indeterminate. 
A)  increase, so that equilibrium price and equilibrium quantity will increase. 
B)  increase, so that equilibrium price will decrease and equilibrium quantity will increase. 
C)  decrease, so that equilibrium price and equilibrium quantity will increase. 
D)  increase, but the new equilibrium price and quantity are indeterminate.

Question 11

The ʺlaw of demandʺ predicts that, other things being equal,

Accepted Answer

A)  an increase in the price of pizza decreases the quantity of pizza demanded. 
B)  an increase in the price of coffee decreases the quantity of tea demanded. 
C)  an increase in the price of downloaded music decreases the demand for downloaded music. 
D)  a decrease in the price of gasoline decreases the quantity of gasoline demanded. 
A)  an increase in the price of pizza decreases the quantity of pizza demanded. 
B)  an increase in the price of coffee decreases the quantity of tea demanded. 
C)  an increase in the price of downloaded music decreases the demand for downloaded music. 
D)  a decrease in the price of gasoline decreases the quantity of gasoline demanded.

Question 12

The quantity supplied of a good is

Accepted Answer

A)  the amount the firm would sell if it faced no resource constraints. 
B)  equal to the difference between the quantity available and the quantity desired by all consumers and producers. 
C)  the same thing as the quantity demanded at each price. 
D)  the amount that the producers are planning to sell at a particular price during a given time period. 
A)  the amount the firm would sell if it faced no resource constraints. 
B)  equal to the difference between the quantity available and the quantity desired by all consumers and producers. 
C)  the same thing as the quantity demanded at each price. 
D)  the amount that the producers are planning to sell at a particular price during a given time period.

Question 13

$\begin{array}{|l|l|l|}
\hline\begin{array}{l}
\text { Price } \
\text { (dollars per } \
\text { cellular } \
\text { phone) }
\end{array} & \begin{array}{l}
\text { Quantity } \
\text { demanded } \
\text { (thousands) }
\end{array} & \begin{array}{l}
\text { Quantity } \
\text { supplied } \
\text { (thousands) }
\end{array} \\hline 100 & 50 & 100 \
\hline 80 & 55 & 80 \
\hline 50 & 60 & 60 \
\hline 20 & 100 & 40 \
\hline
\end{array}$
-Using the data in the above table, the equilibrium quantity and equilibrium price for a cellular telephone is

Accepted Answer

A)  40 thousand and $20. 
B)  50 thousand and $100. 
C)  80 thousand and $80. 
D)  60 thousand and $50. 
A)  40 thousand and $20. 
B)  50 thousand and $100. 
C)  80 thousand and $80. 
D)  60 thousand and $50.

Question 14

-In the figure above, which movement could be the result of an increase in the wages paid to oil workers?

Accepted Answer

A)  point a to point e 
B)  point a to point c 
C)  point a to point d 
D)  point a to point b 
A)  point a to point e 
B)  point a to point c 
C)  point a to point d 
D)  point a to point b

Question 15

The law of demand implies that, other things remaining the same,

Accepted Answer

A)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will decrease. 
B)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will increase. 
C)  as the demand for cheeseburgers increases, the price of a cheeseburger will fall. 
D)  as income increases, the quantity of cheeseburgers demanded will increase. 
A)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will decrease. 
B)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will increase. 
C)  as the demand for cheeseburgers increases, the price of a cheeseburger will fall. 
D)  as income increases, the quantity of cheeseburgers demanded will increase.

Question 16

A price below the equilibrium price results in

Accepted Answer

A)  a shortage. 
B)  a surplus. 
C)  a further price fall. 
D)  excess supply. 
A)  a shortage. 
B)  a surplus. 
C)  a further price fall. 
D)  excess supply.

Question 17

An increase in technology will shift the goodʹs supply curve rightward.

Accepted Answer

A) True 
 B)False

Question 18

An increase in the incomes of baseball fans in New York leads to a rightward movement along the demand curve but does not shift the demand curve for Yankees tickets.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following leads to a movement along the supply curve for shredded wheat but does not shift the supply curve for shredded wheat?

Accepted Answer

A)  perfect weather conditions that resulted in a large wheat crop 
B)  A fall in the price of shredded wheat. 
C)  an increase in the cost of machinery used to shred wheat 
D)  a decrease in the number of shredded wheat producers 
A)  perfect weather conditions that resulted in a large wheat crop 
B)  A fall in the price of shredded wheat. 
C)  an increase in the cost of machinery used to shred wheat 
D)  a decrease in the number of shredded wheat producers

Question 20

Which of the following increases the demand for a normal good?

Accepted Answer

A)  an decrease in the price of a substitute 
B)  a decrease in income 
C)  an increase in the price of a complement 
D)  the price of the good is expected to increase in the future 
A)  an decrease in the price of a substitute 
B)  a decrease in income 
C)  an increase in the price of a complement 
D)  the price of the good is expected to increase in the future

Which of the following decreases the supply of restaurant meals?

A decrease in quantity demanded because of an increase in price is represented by a

If the price per bushel of apples increased from $7.00 to $8.00 because of a poor harvest, the

The relative price of a good is greater than the money price of a good.

A recession occurs and peopleʹs incomes decrease. Knowing that an iPad is a normal good, you predict that the demand for an iPad

If the money price of hats rises and no other prices change, the i. relative price of a hat rises ii. opportunity cost of a hat rises

-In the above figure, if D₂is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result?

Price (dollars per cellular phone) Quantity demanded (thousands) Quantity supplied (thousands) 100 50 100 80 55 80 50 60 60 20 100 40 -Using the data in the above table, at the price of $80 a phone, a

The ʺlaw of demandʺ states that changes in

Doctors find that one aspirin per day reduces the risk of heart attacks. Demand for aspirin will

The ʺlaw of demandʺ predicts that, other things being equal,

The quantity supplied of a good is

Price (dollars per cellular phone) Quantity demanded (thousands) Quantity supplied (thousands) 100 50 100 80 55 80 50 60 60 20 100 40 -Using the data in the above table, the equilibrium quantity and equilibrium price for a cellular telephone is

-In the figure above, which movement could be the result of an increase in the wages paid to oil workers?

The law of demand implies that, other things remaining the same,

A price below the equilibrium price results in

An increase in technology will shift the goodʹs supply curve rightward.

An increase in the incomes of baseball fans in New York leads to a rightward movement along the demand curve but does not shift the demand curve for Yankees tickets.

Which of the following leads to a movement along the supply curve for shredded wheat but does not shift the supply curve for shredded wheat?

Which of the following increases the demand for a normal good?

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

Exam 3: Demand and Supply

Which of the following decreases the supply of restaurant meals?

A decrease in quantity demanded because of an increase in price is represented by a

If the price per bushel of apples increased from $7.00 to $8.00 because of a poor harvest, the

The relative price of a good is greater than the money price of a good.

A recession occurs and peopleʹs incomes decrease. Knowing that an iPad is a normal good, you predict that the demand for an iPad

If the money price of hats rises and no other prices change, the i. relative price of a hat rises ii. opportunity cost of a hat rises

-In the above figure, if D2 is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result?

Price (dollars per cellular phone) Quantity demanded (thousands) Quantity supplied (thousands) 100 50 100 80 55 80 50 60 60 20 100 40 -Using the data in the above table, at the price of $80 a phone, a

The ʺlaw of demandʺ states that changes in

Doctors find that one aspirin per day reduces the risk of heart attacks. Demand for aspirin will

The ʺlaw of demandʺ predicts that, other things being equal,

The quantity supplied of a good is

Price (dollars per cellular phone) Quantity demanded (thousands) Quantity supplied (thousands) 100 50 100 80 55 80 50 60 60 20 100 40 -Using the data in the above table, the equilibrium quantity and equilibrium price for a cellular telephone is

-In the figure above, which movement could be the result of an increase in the wages paid to oil workers?

The law of demand implies that, other things remaining the same,

A price below the equilibrium price results in

An increase in technology will shift the goodʹs supply curve rightward.

An increase in the incomes of baseball fans in New York leads to a rightward movement along the demand curve but does not shift the demand curve for Yankees tickets.

Which of the following leads to a movement along the supply curve for shredded wheat but does not shift the supply curve for shredded wheat?

Which of the following increases the demand for a normal good?

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

-In the above figure, if D₂is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result?